AUDIT REPORT - 2007 STANDARD

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HEALTHCARE FOR THE HOMELESS - HOUSTON FINANCIAL STATEMENTS December 31, 2007 and 2006 HEALTHCARE FOR THE HOMELESS - HOUSTON TABLE OF CONTENTS December 31, 2007 and 2006 PAGE INDEPENDENT AUDITORS’ REPORT 3 FINANCIAL STATEMENTS: STATEMENTS OF FINANCIAL POSITION 4 STATEMENTS OF ACTIVITIES 5 STATEMENT OF FUNCTIONAL EXPENSES 6 STATEMENTS OF CASH FLOWS 7 NOTES TO FINANCIAL STATEMENTS 8 HEALTHCARE FOR THE HOMELESS - HOUSTON STATEMENTS OF FINANCIAL POSITION December 31, 2007 and 2006 ASSETS 2007 2006 Cash and cash equivalents $ 283,923 $ 485,185 Certificate of deposit 31,387 - Accounts receivable 129,002 21,509 Government grants receivable 307,027 159,702 Pledges receivable 684,730 450,000 Prepaid expenses 3,140 3,028 Furniture, fixtures and equipment, net 25,737 18,576 TOTAL ASSETS $ 1,464,946 $ 1,138,000 LIABILITIES AND NET ASSETS LIABILITIES: Accounts payable $ 438,356 $ 204,147 NET ASSETS: Unrestricted 406,860 633,853 Temporarily restricted 619,730 300,000 Total net assets 1,026,590 933,853 TOTAL LIABILITIES AND NET ASSETS $ 1,464,946 $ 1,138,000 See accompanying notes to ...

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• Publié par: Onsey
• Nombre de lectures: 25
• Langue: English

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HEALTHCARE FOR THE HOMELESS - HOUSTON

FINANCIAL STATEMENTS

December 31, 2007 and 2006

HEALTHCARE FOR THE HOMELESS - HOUSTON

TABLE OF CONTENTS

December 31, 2007 and 2006

PAGE

INDEPENDENT AUDITORS’ REPORT

3

FINANCIAL STATEMENTS:

STATEMENTS OF FINANCIAL POSITION

4

STATEMENTS OF ACTIVITIES

5

STATEMENT OF FUNCTIONAL EXPENSES

6

STATEMENTS OF CASH FLOWS

7

NOTES TO FINANCIAL STATEMENTS

8

See accompanying notes to financial statements.

4

HEALTHCARE FOR THE HOMELESS - HOUSTON

STATEMENTS OF FINANCIAL POSITION

December 31, 2007 and 2006

ASSETS

2007

2006

Cash and cash equivalents

$

283,923

$

485,185

Certificate of deposit

31,387

-

Accounts receivable

129,002

21,509

Government grants receivable

307,027

159,702

Pledges receivable

684,730

450,000

Prepaid expenses

3,140

3,028

Furniture, fixtures and equipment, net

25,737

18,576

TOTAL ASSETS

$

1,464,946

$

1,138,000

LIABILITIES AND NET ASSETS

LIABILITIES:

Accounts payable

$

438,356

$

204,147

NET ASSETS:

Unrestricted

406,860

633,853

Temporarily restricted

619,730

300,000

Total net assets

1,026,590

933,853

TOTAL LIABILITIES AND NET ASSETS

$

1,464,946

$

1,138,000

See accompanying notes to financial statements.

5

HEALTHCARE FOR THE HOMELESS - HOUSTON

STATEMENTS OF ACTIVITIES

For the years ended December 31, 2007 and 2006

CHANGES IN UNRESTRICTED NET ASSETS:

2007

2006

Support and revenues:

Programs

$

166,729

$

107,880

Individuals

83,587

107,842

Corporations

67,913

132,743

Federal and state grants and contracts

710,665

580,871

Private grants

611,060

1,048,600

In-kind contributions

392,602

392,831

Other

64,760

20,842

Total support and revenues

2,097,316

2,391,609

Expenses:

Healthcare services

1,884,496

1,553,904

Management and general

316,524

393,317

Fundraising

123,289

59,873

Total expenses

2,324,309

2,007,094

Support and revenues over (under) expenses

(226,993)

384,515

Net assets released – restrictions satisfied

-

33,000

Increase (decrease) in unrestricted net assets

(226,993)

417,515

CHANGES IN TEMPORARILY RESTRICTED NET ASSETS:

Contributions

319,730

-

Net assets released – restrictions satisfied

-

(33,000)

Increase (decrease) in temporarily restricted net assets

319,730

(33,000)

INCREASE IN NET ASSETS

92,737

384,515

NET ASSETS, beginning of year

933,853

549,338

NET ASSETS, end of year

$

1,026,590

$

933,853

See accompanying notes to financial statements.

7

HEALTHCARE FOR THE HOMELESS - HOUSTON

STATEMENTS OF CASH FLOWS

For the years ended December 31, 2007and 2006

2007

2006

CASH FLOWS FROM OPERATING ACTIVITIES:

Increase in net assets

$

92,737

$

384,515

Adjustments to reconcile increase in net assets

to net cash provided (used) by operating activities:

Depreciation

10,595

7,357

Changes in assets and liabilities:

(Increase) decrease in:

Accounts receivable

(107,493)

(1,361)

Government grants receivable

(147,325)

(8,926)

Pledges receivable

(234,730)

(39,500)

Prepaid expenses

(112)

1,720

Increase in:

Accounts payable

234,209

34,211

Net cash provided (used) by operating activities

(152,119)

378,016

CASH FLOWS FROM INVESTING ACTIVITIES:

Purchase of certificate of deposit

(31,387)

-

Purchase of equipment

(17,756)

(9,698)

Net cash used by investing activities

(49,143)

(9,698)

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

(201,262)

368,318

CASH AND CASH EQUIVALENTS, beginning of year

485,185

116,867

CASH AND CASH EQUIVALENTS, end of year

$

283,923

$

485,185

8

HEALTHCARE FOR THE HOMELESS - HOUSTON

NOTES TO FINANCIAL STATEMENTS

December 31, 2007 and 2006

(1)

Summary of significant accounting policies

Background

Healthcare for the Homeless – Houston (the “Organization”) is a nonprofit corporation organized by a

consortium of healthcare and community-based service organizations.

The mission of the

Organization is to promote health, hope and dignity for Houston’s homeless through accessible and

comprehensive care. Support for the Organization is provided primarily through donor contributions,

grants and volunteer services.

Originally, the Organization operated as a sponsored project of the Greater Houston Community

Foundation (“GHCF”), which provided fiduciary oversight and assistance with organizational

development.

On April 1, 2001, the Organization separated from GHCF and began functioning as an

independent 501(c)(3) tax-exempt corporation under the governance of its own board of directors,

which includes formerly homeless individuals.

Contributions

Contributions are recognized when the donor makes a promise to give to the Organization that is, in

substance, unconditional.

Contributions that are restricted by the donor are reported as increases in

unrestricted net assets if the restrictions expire in the fiscal year in which the contributions are

recognized.

All other donor-restricted contributions are reported as increases in temporarily or

permanently restricted net assets depending on the nature of the restrictions.

When a restriction

expires, temporarily restricted net assets are reclassified to unrestricted net assets.

Functional expense allocation

Directly identifiable expenses are charged to programs and supporting services.

Expenses related to

more than one function are charged to programs and supporting services on the basis of periodic time

and expense studies or on the basis of square footage.

Management and general expenses include

those expenses that are not directly identifiable with any other specific function but provide for the

overall support and direction of the Organization.

The Organization has a staffing agreement with an entity that provides licensed medical and

administrative professionals.

These and other contract service expenses are presented as salaries

and employee benefits in the statement of functional expenses.

Donated materials and services

The value of donated materials is reflected in the accompanying financial statements to the extent that

an objective basis is available to measure the value of such items.

Donated services are recognized as contributions in accordance with SFAS No. 116, Accounting for

Contributions Received and Contributions Made, if the services (a) create or enhance nonfinancial

assets or (b) require specialized skills, are performed by people with those skills, and would otherwise

have to be contracted and paid for by the Organization.

Other volunteers donate significant amounts of

their time in fulfillment of the functions of the Organization that were not recognized as contributions in

the financial statements since the recognition criteria under SFAS No. 116 were not met.

9

HEALTHCARE FOR THE HOMELESS – HOUSTON

NOTES TO FINANCIAL STATEMENTS

December 31, 2007 and 2006

(1)

Summary of significant accounting policies (cont’d)

Cash and cash equivalents

For the purposes of the statement of cash flows, the Organization considers all highly liquid

investments purchased with an original maturity of three months or less to be cash equivalents.

Receivables

Government grants, pledges and other receivables are considered by management to be fully

collectible and accordingly no allowance for doubtful accounts is considered necessary.

If amounts

become uncollectible, operations will be charged when the determination is made.

Furniture, fixtures and equipment

Furniture, fixtures and equipment are shown at cost or, in the case of donated assets, fair market value

at the date of the gift.

Donated assets are reported as unrestricted support unless the donor has

restricted the donated asset to a specific purpose.

Assets donated with explicit restrictions regarding

their use and contributions of cash that must be used to acquire property and equipment are reported

as restricted support.

Absent donor stipulations regarding how long those donated assets must be

maintained, the Organization reports expirations of donor restrictions when the donated or acquired

assets are placed in service as instructed by the donor and reclassifies temporarily restricted net

assets to unrestricted net assets at that time.

Depreciation of furniture, fixtures and equipment is

provided on a straight-line basis over the following estimated useful lives of the assets:

Furniture and fixtures

5 years

Computer software

3 years

Equipment

3 to 5 years

Maintenance and repairs are charged to expense as incurred.

Costs of betterments and renewals are

capitalized.

Gains or losses upon disposal of assets are recognized in the period during which the

transaction occurs.

Tax status

The Organization has been granted tax-exempt status pursuant to Section 501(c)(3) of the Internal

Revenue Code and is not a private foundation.

Gifts to the Organization are tax deductible.

Concentration of credit risk

The Organization occasionally maintains deposits in excess of federally insured limits.

Statement of

Financial Accounting Standards No. 105 identifies these items as a concentration of credit risk

requiring disclosure, regardless of the degree of risk.

The risk is managed by maintaining all deposits

in high quality financial institutions.

Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in

the United States of America requires management to make estimates and assumptions that affect the

reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date

of the financial statements and the reported amounts of support, revenues and expenses during the

reporting period.

Actual results could differ from those estimates.

10

HEALTHCARE FOR THE HOMELESS - HOUSTON

NOTES TO FINANCIAL STATEMENTS

December 31, 2007 and 2006

(2)

Restrictions on assets

At December 31, 2007, temporarily restricted net assets consisted of a $619,730 pledge receivable,

net of discount, that is to be used to fund direct patient care service costs through the year 2009.

At December 31, 2006, temporarily restricted net assets consisted of a $300,000 pledge receivable

that were used to fund direct patient care service costs through the year 2007.

(3)

Pledges receivable

At December 31, 2007 and 2006, unconditional promises to give were discounted to present value at a

discount rate of 5% and are due to be collected as follows:

2007

2006

Gross amounts due in

One year

$

385,865

$

450,000

One year to three years

320,865

-

706,730

450,000

Less discount to present value

(22,000)

-

$

684,730

$

450,000

(4)

Furniture, fixtures and equipment

Furniture, fixtures and equipment, less accumulated depreciation, at December 31, 2007 and 2006

included the following:

2007

2006

Furniture and fixtures

$

2,301

$

2,301

Computer software

6,465

6,465

Office and medical equipment

46,046

56,248

Construction in progress

12,362

-

67,174

65,014

Less accumulated depreciation

(41,437)

(46,438)

$

25,737

$

18,576

(5)

Major donors

During 2007, one Federal grant and one donor accounted for approximately $973,000 or 48% of the

Organization’s total unrestricted and restricted support and revenues. During 2006, one Federal grant

and two foundation donors accounted for approximately $855,000 or 36% of the Organization’s total

unrestricted and restricted support and revenues.

11

HEALTHCARE FOR THE HOMELESS - HOUSTON

NOTES TO FINANCIAL STATEMENTS

December 31, 2007 and 2006

(6)

Related party transactions

During 2007, the Organization engaged a company that employs a relative of a member of the

Organization's Board of Directors to provide consulting services for a fee of $13,200. The Board of

Directors unanimously voted to approve the terms of the consulting engagement. The related party

board member abstained from the vote.

(7)

Commitments and contingencies

The Organization receives significant financial assistance from Federal, state and local government

agencies in the form of grants.

The disbursement of funds received under these programs generally

requires compliance with terms and conditions specified in the grant agreement and are subject to

audit by the grantor agencies.

Any disallowed claims resulting from such audits would become a

liability of the Organization.

However, in the opinion of management, any potential disallowed claims,

if any, would not have a material effect on the financial statements.

At December 31, 2007 and 2006, the Organization had an unsecured business line of credit with a

bank that provides for maximum borrowings of $50,000.

Interest at 8% is payable monthly.

At

December 31, 2007 and 2006, there were no borrowings outstanding on the line of credit.